Introduction and Learning Objectives

Introduction

Insurance in California is heavily regulated to protect consumers and ensure fair business practices. This chapter explores the regulatory structure of the insurance marketplace, the powers and responsibilities of the Insurance Commissioner, key consumer protection laws, and how market conduct is monitored and enforced.

Learning Objectives

By the end of this chapter, you should be able to:

• Identify the role of the California Insurance Code and California Code of Regulations

• Understand how laws and regulations are created and amended

• Describe the powers and election process of the Insurance Commissioner

• Apply the Unfair Practices Article

• Identify key privacy protection laws and their application

• Understand conservation proceedings and the definition of an insolvent insurer

• Explain the steps an agent should take when fraud is suspected

• Interpret key terminology in the California Insurance Code